4 Reasons Apple’s Stock Is Ready For A Big Move (AAPL)

After blowing out earnings, Apple’s stock (AAPL) put in a big reversal and headed lower into the end of April. Since then, the stock hasn’t done much, as shares of Apple have traded in a 10 to 12 dollar range since late February. Feels like a big move is coming… but there’s more to support this.

Here are 4 reasons that I think a bigger directional move may be coming for shares of Apple Inc. (AAPL) as we near summer (use the charts below as reference):

  1. Bollinger Band Width is near the lowest levels seen in the last 6 months.
  2. AAPL stock price is near the middle of the Bollinger Bands.
  3. The Relative Strength Index (RSI) has been range bound since early March.
  4. AAPL volatility measured by (VXAPL) is near the lowest levels seen in the last 6 months.

Apple (AAPL) Daily Stock Chart

apple stock aapl topping pattern may 2015

Next up is the volatility chart for Apple. As you can see, it is near its lowest levels in 6 months. Last I looked, it was lower again today. This opens up the doors for a big move heading into summer. Which way? Stay tuned and follow your systems and indicators.

CBOE Equity VIX on Apple (VXAPL) Chart

cboe apple stock volatility vxapl chart may 2015

Thanks for reading.

 

Follow Gavin on Twitter: @OptiontradinIQ

The author does not have a position in any mentioned securities at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.